Final Rules on Education Tax Credits
January 1, 2003
The final regulations on the Hope and Lifetime Learning tax credits, published by the Internal Revenue Service December 27, 2002, interpret section 25A of the Code, providing guidance to taxpayers who may claim the credits. Although the 25A rules do not address institutional reporting requirements, a number of provisions are important for colleges and universities. These provisions cover the definition of an eligible educational institution, qualified tuition and related expenses, and the timing of payments.
The final regulations hold, as did the rules first proposed in 1999, that qualified expenses include fees for books, supplies, and equipment used in a course of study only if the fees are required to be paid to the institution for the enrollment or attendance of the student.
The rules also clarify that personal expenses such as room and board, insurance, medical expenses, transportation, and similar personal living expenses are not qualified expenses for purposes of claiming the credits, regardless of whether the fee must be paid to the institution as a condition of enrollment. Institutions must determine the allocation of bundled fees that combine qualified expenses and personal expenses that are not qualified. The rules became effective on December 26, 2002.
- Affordable Care Act: Final Rules on Coverage for Adjuncts and Students
- Administrative Jobs and Benefits Costs Drive Higher Ed Labor Costs
- OMB Super Circular Makes Changes to Audit Requirements
- 2014 Higher Education Accounting Forum
April 27-29, 2014
- ON-DEMAND: Understanding the Results of the 2013 NACUBO-Commonfund Study of Endowments, and a Look to 2014 and Beyond
- ON-DEMAND: How Behavioral Changes Helped Cut Energy Usage in Half
- ON-DEMAND: Developing a Market-Informed Approach to Tuition Pricing
- ON-DEMAND: Responsibility Center Management: The Process Necessary to Complete a Successful Implementation
- ON-DEMAND: OD: Responsibility Center Management: How Innovations Have Changed the Nature of RCM
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis